The European Union: Questions and Answers
Kristin Archick
Specialist in European Affairs
March 4, 2013January 15, 2014
Congressional Research Service
7-5700
www.crs.gov
RS21372
CRS Report for Congress
Prepared for Members and Committees of Congress
The European Union: Questions and Answers
Summary
The European Union (EU) is a political and economic partnership that represents a unique form
of cooperation among sovereign countries. The Union is the latest stage in a process of
integration begun after World War II, initially by six Western European countries, to foster
interdependence and make another war in Europe unthinkable. Today, the EU is composed of 2728
member states, including most of the countries of Central and Eastern Europe, and has helped to
promote peace, stability, and economic prosperity throughout the European continent.
The EU has been built through a series of binding treaties, and over the years, EU member states
have sought to harmonize laws and adopt common policies on an increasing number of economic,
social, and political issues. EU member states share a customs union, a single market in which
goods, people, and capital move freely, a common trade policy, and a common agricultural policy.
SeventeenEighteen EU member states use a common currency (the euro). In addition, the EU has been
developing a Common Foreign and Security Policy (CFSP), which includes a Common Security
and Defense Policy (CSDP), and pursuing cooperation in the area of Justice and Home Affairs
(JHA) to forge common internal security measures.
EU member states work together through common institutions to set policy and to promote their
collective interests. Key EU institutions include the European Council, composed of EU Heads of
State or Government, which acts as the strategic guide and driving force for EU policy; the
European Commission, which upholds the common interest of the Union as a whole and
functions as the EU’s executive; the Council of the European Union (also known as the Council
of Ministers), which represents the national governments; and the directly elected European
Parliament, which represents the citizens of the EU.
EU decision-making processes and the role played by the EU institutions vary depending on the
subject under consideration. For most economic and social issues, EU member states have largely
pooled their national sovereignty, and EU decision-making has a supranational quality. Decisions
in other areas, such as foreign policy, require the unanimous consensus of all 2728 member states.
The Lisbon Treaty, which took effect in December 2009, is the EU’s latest attempt to reform its
governing institutions and decision-making processes in order to enable an enlarged EU to
function more effectively. The Lisbon Treaty also seeks to give the EU a stronger voice in the
foreign policy realm and to increase democratic transparency within the EU.
The United States has strongly supported the European integration project since its inception as a
means to foster democratic states and robust trading partners. The United States and the EU have
a dynamic political partnership and share a huge trade and investment relationship. To expand and
strengthen the transatlantic economy even further, the United States and the EU plan to launch
negotiations on a are pursuing a
comprehensive and ambitious Transatlantic Trade and Investment Partnership.
Nevertheless,
some tensions exist in the broad relationship, ranging from long-standing U.S.-EU
trade disputes to those arising from different U.S.-EU views on data privacy and climate change.
And while some in the EU are concerned that the U.S. “pivot” toward Asia could ultimately
weaken U.S.-EU ties, U.S. officials worry that the ongoing Eurozone crisis could adversely affect
the U.S. economic recovery trade disputes to
climate change. Data privacy also continues to be a sticking point, especially following the recent
allegations of U.S. surveillance activities in Europe.
This report serves as a primer on the EU and provides a brief description of U.S.-EU relations
that may be of interest in the 113th Congress. For more information, also see CRS Report
RS22163, The United States and Europe: Current Issues, by Derek E. Mix.
Congressional Research Service
The European Union: Questions and Answers
Contents
What Is the European Union? .......................................................................................................... 1
How Does the EU Work? ................................................................................................................. 1
How Is the EU Governed? ............................................................................................................... 2
What Is the Lisbon Treaty? .............................................................................................................. 3
What Is the Euro and the Eurozone Crisis? ..................................................................................... 4
Why and How Is the EU Enlarging?................................................................................................ 5
Does the EU Have a Foreign Policy? .............................................................................................. 6
Does the EU Have a Defense Policy? .............................................................................................. 7
What Is the Relationship of the EU to NATO? ................................................................................ 8
What Is Justice and Home Affairs (JHA)? ....................................................................................... 8
Does the EU Have a Trade Policy and Process? .............................................................................. 9
How Do EU Countries and Citizens View the EU? ....................................................................... 10
Does the United States Have a Formal Relationship with the EU? ............................................... 11
Who Are U.S. Officials’ Counterparts in the EU? ......................................................................... 11
How Are U.S.-EU Political Relations Doing? ............................................................................... 1211
How Are U.S.-EU Economic Relations Doing? ............................................................................ 12
Contacts
Author Contact Information........................................................................................................... 14
Congressional Research Service
The European Union: Questions and Answers
What Is the European Union?
The European Union (EU) is a political and economic partnership that represents a unique form
of cooperation among 2728 member states.1 Built through a series of binding treaties, the Union is
the latest stage in a process of integration begun after World War II to promote peace and
economic prosperity in Europe. Its founders hoped that by creating specified areas in which
member states agreed to share sovereignty—initially in coal and steel production, economics and
trade, and nuclear energy—it would promote interdependence and make another war in Europe
unthinkable. Since the 1950s, this European integration project has expanded to encompass other
economic sectors, a customs union, a single market in which goods, people, and capital move
freely, a common trade policy, a common agricultural policy, many aspects of social and
environmental policy, and a common currency (the euro) that is used by 1718 member states. Since
the mid-1990s, EU member states have also taken significant steps toward political integration,
with decisions to develop a Common Foreign and Security Policy (CFSP) and efforts to promote
cooperation in the area of Justice and Home Affairs (JHA), which is aimed at forging common
internal security measures.
How Does the EU Work?
EU member states work together through common institutions (see next question) to set policy
and promote their collective interests. Over the past several decades, EU members have
progressively committed to harmonizing laws and adopting joint policies on an extensive and
increasing number of issues. However, decision-making processes and the role of the EU
institutions vary depending on the subject under consideration.
On a multitude of economic and social policies (previously termed Pillar One, or the European
Community), EU members have essentially pooled their sovereignty and EU institutions hold
executive authority. Integration in these fields—which range from trade and agriculture to
education and the environment—has traditionally been the most developed and far-reaching. EU
decisions in such areas often have a supranational quality because most are subject to a complex
majority voting system among the member states and are legally binding.
For issues falling under the Common Foreign and Security Policy (once known as Pillar Two),
EU member states have agreed to cooperate, but most decision-making is intergovernmental and
requires the unanimous agreement of all 2728 EU countries. Thus, member states retain more
discretion over their participation as any one country can veto a decision. For many years,
unanimous agreement among the member states was also largely the rule for policy-making in the
Justice and Home Affairs area (formerly Pillar Three); recently, however, EU member states
agreed to accelerate integration in the JHA field by extending the use of the EU’s majority voting
system to most JHA issues and giving EU institutions a greater role in JHA policy-making.
1
The 2728 members of the EU are: Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia,
Finland,
France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands,
Poland,
Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
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The European Union: Questions and Answers
How Is the EU Governed?
The EU is governed by several institutions. They do not correspond exactly to the traditional
branches of government or division of power in representative democracies. Rather, they embody
the EU’s dual supranational and intergovernmental character:
•
The European Council acts as the strategic guide for EU policy. It is composed of
the Heads of State or Government of the EU’s member states and the President of
the European Commission; it meets several times a year in what are often termed
“EU summits.” The European Council is headed by a President, appointed by the
member states to organize the Council’s work and facilitate consensus.
•
The European Commission is essentially the EU’s executive and upholds the
common interest of the EU as a whole. It implements and manages EU decisions
and common policies, ensures that the provisions of the EU’s treaties and rules
are carried out properly, and has the sole right of legislative initiative in most
policy areas. It is composed of 2728 Commissioners, one from each country, who
are appointed by agreement among the member states to five-year terms. One
Commissioner serves as Commission President; the others hold distinct
portfolios (e.g., agriculture, energy, trade). On many issues, the Commission
represents the EU internationally and handles negotiations with outside countries.
The Commission is also the EU’s primary administrative entity.
•
The Council of the European Union (also called the Council of Ministers)
represents the 2728 national governments. The Council enacts legislation, usually
based on proposals put forward by the Commission, and agreed to (in most cases)
by the European Parliament. Different ministers from each country participate in
Council meetings depending on the subject under consideration (e.g., foreign
ministers would meet to discuss the Middle East, agriculture ministers to discuss
farm subsidies). Most decisions are subject to a complex majority voting system,
but some areas—such as foreign and defense policy, taxation, or accepting new
members—require unanimity. The Presidency of the Council rotates among the
member states, changing every six months; the country holding the Presidency
helps set agenda priorities and organizes most of the work of the Council.
•
The European Parliament represents the citizens of the EU. The Parliament
currently consists of 754766 members who are directly elected for five-year terms. Each
Each member state has a number of seats roughly proportional to the size of its
population. Although the Parliament cannot initiate legislation, it shares
legislative power with the Council of Ministers in many policy areas, giving it
the right to accept, amend, or reject the majority of proposed EU legislation in a
process known as the “ordinary legislative procedure” or “co-decision.” The
Parliament also decides on the allocation of the EU’s budget jointly with the
Council. Members of the European Parliament (MEPs) caucus according to
political affiliation, rather than nationality.
•
A number of other institutions also play key roles in the EU. The Court of Justice
interprets EU laws and its rulings are binding; a Court of Auditors monitors the
EU’s financial management; the European Central Bank manages the euro and
EU monetary policy; and a number of advisory committees represent economic,
social, and regional interests.
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What Is the Lisbon Treaty?
On December 1, 2009, the EU’s latest institutional reform endeavor—the Lisbon Treaty—came
into force following its ratification by all of the EU’s then-27 member states. It is the final
product of an effort
begun in 2002 to reform the EU’s governing institutions and decision-making
processes in order
to enable an enlarged Union to function more effectively. In addition, the treaty
seeks to give the
EU a stronger and more coherent voice and identity on the world stage, and to increase
increase democracy and transparency within the EU.2
To help accomplish these goals, the Lisbon Treaty establishes two new leadership positions. The
new President of the European Council, chosen by the member states for a term of two and onehalf years (renewable once), now chairs the meetings of the 2728 EU Heads of State or
Government, serves as coordinator and spokesman for their work, seeks to ensure policy
continuity, and strives to forge consensus among the member states. The Lisbon Treaty also
created a dual-hatted position of High Representative of the Union for Foreign Affairs and
Security Policy to serve essentially as the EU’s chief diplomat. The High Representative is both
an agent of the Council of Ministers—and thus speaks for the member states on foreign policy
issues—as well as a Vice President of the European Commission, responsible for managing most
of the Commission’s diplomatic activities and foreign assistance programs (see “Does the EU
Have a Foreign Policy?” for more information).
Among other key measures, the Lisbon Treaty simplifies the EU’s qualified majority voting
system and expands its use to policy areas previously subject to member state unanimity in the
Council of Ministers; this change was intended in part to speed EU decision-making and improve
its efficiency. Nevertheless, in practice, member states will likely still strive for consensus on
sensitive policy issues (such as police cooperation, immigration, and countering terrorism) that
are usually viewed as central to a nation-state’s sovereignty. At the same time, the mere
possibility of a vote may make member state governments more willing to compromise and reach
a common policy decision.
In addition, the Lisbon Treaty increases the relative power of the European Parliament in an effort
to improve democratic accountability. It strengthens the Parliament’s role in the EU’s budgetary
process and extends the use of the “co-decision” procedure to more policy areas, including
agriculture and home affairs issues.3 As such, the treaty gives the Parliament a say equal to that of
the member states in the Council of Ministers over the vast majority of EU legislation (with some
exceptions, such as most aspects of foreign and defense policy). In addition, the Lisbon Treaty
provides national parliaments with a degree of greater authority to challenge draft EU legislation
and allows for the possibility of new legislative proposals based on citizen initiatives.
2
The Lisbon Treaty amends, rather than replaces, existing EU treaties. The history of the Lisbon Treaty is replete with
contentious negotiations among the member states and numerous ratification hurdles; it evolved from the proposed EU
constitutional treaty, which was rejected in French and Dutch national referendums in 2005. Despite the failure of the
EU constitutional treaty, experts say the Lisbon Treaty preserves over 90% of the substance of the original treaty. For
more information, see CRS Report RS21618, The European Union’s Reform Process: The Lisbon Treaty, by Kristin
Archick and Derek E. Mix.
3
The Lisbon Treaty technically renames the “co-decision” procedure as the “ordinary legislative procedure.”
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The European Union: Questions and Answers
Key EU Positions and Current Leaders
The President of the European Council is Herman Van Rompuy, a former prime minister of Belgium. Appointed by
the member states in 2009 initially, Van Rompuy is the first holder of this new position, which was created by the
Lisbon Treaty. In June 2012, Van Rompuy was re-appointed to a second term, which will conclude in November 2014.
The President of the European Commission is José Manuel Barroso, a former prime minister of Portugal. Barroso
has served as Commission President since 2004, and is currently in his second five-year term, which will end in 2014.
The Commission President and the other 2627 Commissioners are appointed by agreement among the member states,
subject to the approval of the European Parliament.
IrelandGreece holds the Presidency of the Council of Ministers (often termed the “EU Presidency”) from January to June
2013; Lithuania2014; Italy will hold the Presidency for the second half of the year, from July to December 20132014.
Every two-and-a-half years (twice per each five-year parliamentary term) Members of the European Parliament (MEPs)
elect the President of the European Parliament, currently German MEP Martin Schulz, of the center-left
Progressive Alliance of Socialists and Democrats (S&D) parliamentary group. Elected in January 2012, Schulz replaces
Polish MEP Jerzy Buzek, of the center-right European People’s Party (EPP) group. Traditionally, the two largest
parliamentary groups (currently the EPP and S&D) have agreed to split the position of President during each term.
The High Representative of the Union for Foreign Affairs and Security Policy is Catherine Ashton of the United
Kingdom. Ashton served previously as the European Commissioner for Trade. The High Representative is chosen by
agreement among the member states but like the other members of the Commission, must also be approved by the
European Parliament.
What Is the Euro and the Eurozone Crisis?
SeventeenEighteen of the EU’s 2728 member states belong to the EU’s Economic and Monetary Union
(EMU); these 1718 countries have agreed to closely coordinate their economic and monetary
policies and use a common single currency, the euro.4 The gradual introduction of the euro began
in January 1999 when 11 EU member states became the first to adopt it and banks and many
businesses began using the euro as a unit of account. Euro notes and coins replaced national
currencies in participating states in January 2002. EMU participants also share a common central
bank—the European Central Bank (ECB)—and a common monetary policy. However, they do
not have a common fiscal policy and member states retain control over decisions about national
spending and taxation, subject to certain conditions designed to maintain budgetary discipline.
The 1718 EMU participants are often collectively referred to as “the Eurozone.”
The “Eurozone crisis” began as a sovereign (or public) debt crisis in Greece in 2009-2010. Over
the lastprevious decade, the Greek government borrowed heavily from international capital markets
to pay
for its budget and trade deficits. This left Greece vulnerable to shifts in investor
confidence,
which decreased considerably in 2009 amid the global financial crisis and revelations that
that previous Greek governments had been under-reporting the budget deficit. As investors became
became increasingly nervous that the Greek government’s debt was too high, markets began demanding
demanding higher interest rates for Greek bonds, which drove up Greece’s borrowing costs and further
further increased its debt levels. By early 2010, Greece risked defaulting on its public debt. Since then,
market
Market concerns havesoon spread to several other Eurozone countries with high, potentially
unsustainable levels of public debt, including Ireland, Portugal, Spain, and Italy. The debt
problems of these countries now posehave also posed a risk to the European banking system, and are slowingslowed
economic growth, and leadingled to increased unemployment in many Eurozone countries.
4
The 1718 members of the EU that use the euro today are: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany,
Greece, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
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The European Union: Questions and Answers
European leaders and EU institutions have responded to the Eurozone crisis and sought to stem
its its
contagion with a variety of policy mechanisms. In order to avoid default, Greece, Ireland and
Portugal,
Portugal, and Cyprus have received “bail-out” loans from the EU and the International Monetary Fund. Such
Fund (IMF). Such assistance, however, has come with some strings attached, including the
imposition of strict
austerity measures in these three countries. Spain (the Eurozone’s fourth-largest economy) has
enacted significant austerity measures of its own and Eurozone leaders have announced a bankapproved a
recapitalization plan for SpainSpanish banks. Other key initiatives include:have included the creation of a
permanent EU
financial assistance facility (the European Stability Mechanism, or ESM) to
provide emergency
support to Eurozone countries in financial trouble; a recentan EU decision to create a
single bank
supervisor for the Eurozone, under which the ESM would be able to inject cash
directly into
ailing Eurozone banks; and European Central BankECB efforts to calm the financial markets by
purchasing purchasing
large portions of European sovereign debt and providing significant infusions of credit
into the
European banking system.
Nevertheless, the Eurozone crisis persists, alternating between periods of relative calm and
intense market pressure. Experts note that a Greek default still remains possible and that the
Spanish government may ultimately need an EU “bail-out” package given the country’s ongoing
recession. Cyprus has also requested an EU “bail-out,” and other smaller Eurozone countries,
such as Slovenia, might require EU financial assistance in the future as well. From the U.S.
perspective, policymakers and analysts worry that the Eurozone crisis may negatively affect the
U.S. economy due to both financial and trade linkages (see “How Are U.S.-EU Economic
Relations Doing?” for more information).
In addition, the Eurozone crisis has become a political crisis, resulting in the fall of some member
At present, the Eurozone crisis appears to have abated to some degree, with market confidence
relatively positive since late 2012. EU-IMF financial assistance to Ireland ended in December
2013, and the country has returned to the bond markets. EU aid to Spanish banks has also ceased.
However, experts assert that the Eurozone remains fragile as many members continue to struggle
with weak economic growth and high unemployment. Some analysts suggest that smaller
Eurozone countries, such as Slovenia, may require EU financial assistance in the future, and that
Greece may need additional EU-IMF “bail-out” loans.
The Eurozone crisis has also had significant political implications, resulting in the fall of some
member state governments, and forcing EU leaders to grapple with both the euro’s future viability
and the
desirability of further EU integration. Some view EU efforts to address the crisis as too
timid and
too slow in part because of political differences among EU member states and between
those in
and outside of the Eurozone. Key points of tension have arisen over the proper balance between
between imposing austerity measures versus stimulating growth, and whether and to what extent the
the Eurozone countries should pursue closer fiscal integration. In January 2012, 25 of the EU’s 27
then-27 member states agreed on a new “fiscal compact” aimed at strengthening fiscal discipline within
the Union
within the EU (in part by requiring national budgets to be in balance or in surplus), providing for a
a more automatic imposition of sanctions should a country breach EU fiscal rules, and improving
the coordination of national economic policies; this pact entered into force in January 2013.5
Why and How Is the EU Enlarging?
The EU views the enlargement process as an extraordinary opportunity to promote stability and
prosperity in Europe. Since 2004, EU membership has grown from 15 to 2728 countries, bringing in
most states of Central and Eastern Europe. The EU began as the European Coal and Steel
Community in 1952 with six members (Belgium, France, Germany, Italy, Luxembourg, and the
Netherlands). In 1973, Denmark, Ireland, and the United Kingdom joined what had then become
known as the European Community. Greece joined in 1981, followed by Spain and Portugal in
1986. In 1995, Austria, Finland, and Sweden acceded to the present-day European Union. In
5
For more information, see CRS Report R42377, The Eurozone Crisis: Overview and Issues for Congress, coordinated
by Rebecca M. Nelson; and CRS Report R41411, The Future of the Eurozone and U.S. Interests, coordinated by
Raymond J. Ahearn.
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The European Union: Questions and Answers
2004, the EU welcomed eight former communist countries—the Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia—plus Cyprus and Malta as new
members. Bulgaria and Romania joined in 20072004, the EU welcomed eight former communist countries—the Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia—plus Cyprus and Malta as new
5
For more information, see CRS Report R42377, The Eurozone Crisis: Overview and Issues for Congress, coordinated
by Rebecca M. Nelson.
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members. Bulgaria and Romania joined in 2007. Croatia became the 28th member of the EU on
July 1, 2013.
In order to be eligible for EU membership, countries must first meet a set of established criteria,
including having a functioning democracy and market economy. Once a country becomes an
official candidate, accession negotiations are a long and complex process in which the applicant
must adopt and implement a massive body of EU laws and regulations. The EU named Croatia as
an official candidate for EU membership in 2004 and began accession talks in 2005; negotiations
were concluded in 2011. Following the ratification of the accession treaty in both Croatia and all
27 member states, Croatia is expected to become the 28th member of the Union in July 2013.
Five other Analysts contend that the
carefully managed process of enlargement is one of the EU’s most powerful policy tools, and
that, over the years, it has helped transform many European countries into functioning
democracies and more affluent societies.
Five countries are currently recognized by the EU as official candidates for membership:
Iceland, Macedonia, Montenegro, Serbia, Turkey, and Iceland.6 All are at different stages of the accession
process. The remaining western Balkan states of Albania, Bosnia-Herzegovina, and Kosovo are
recognized as potential future EU candidates, but most experts assess that it will likely be many
years before any of them are ready and Turkey. All are at different stages of the accession
process. While Iceland’s accession negotiations, which began in 2010, are proceeding relatively
quickly, Turkey’s accession talks—underway since 2005—have largely stalled, in part because of
Turkish-EU disputes over the divided island of Cyprus. Similarly, Macedonia’s membership bid
has been complicated by an ongoing dispute with Greece over the country’s official name.
Accession negotiations with Montenegro began in June 2012. Serbia was named an official
candidate in March 2012, but accession talks have not yet begun. The remaining western Balkan
states of Albania, Bosnia-Herzegovina, and Kosovo are all recognized as potential future EU
candidates, but most experts assess that it will likely be many years before any of them are ready
to join the EU.
The EU maintains that the enlargement door remains open to any European country that fulfills
the EU’s political and economic criteria for membership. Nevertheless, some European leaders
and many EU citizens are cautious about additional EU expansion, especially to Turkey or
countries farther east, such as Georgia or Ukraine, in the longer term. Worries about continued
EU enlargement range from fears of unwanted migrant labor to the implications of an everexpanding Union on the EU’s institutions, finances, and overall identity. Observers note that such
qualms are particularly apparent with respect to Turkey’s possible EU accession, given Turkey’s
large size, predominantly Muslim culture, and relatively less prosperous economy.67
Does the EU Have a Foreign Policy?
The EU has a Common Foreign and Security Policy (CFSP), in which member states adopt
common policies, undertake joint actions, and pursue coordinated strategies in areas in which
they can reach consensus. CFSP was established in 1993; the eruption of hostilities in the Balkans
in the early 1990s and the EU’s limited tools for responding to the crisis convinced EU leaders
that the Union had to improve its ability to act collectively in the foreign policy realm. Previous
EU attempts to further such political integration had foundered for decades on member state
concerns about protecting national sovereignty and different foreign policy prerogatives.
CFSP decision-making is dominated by the member states and requires the unanimous agreement
of all 2728. Member states must also ensure that national policies are in line with agreed EU
6
strategies and positions (e.g., imposing sanctions on a country). However, CFSP does not
preclude individual member states pursuing their own national foreign policies or conducting
their own national diplomacy.
6
Although the EU continues to recognize Iceland as an official candidate for membership, Iceland’s accession
negotiations have been on hold since May 2013, when a new Icelandic coalition government largely opposed to EU
membership took office.
7
For more information, see CRS Report RS21344, European Union Enlargement, by Kristin Archick, and CRS Report
RS22517, European Union Enlargement: A Status Report on Turkey’s Accession Negotiations, by Vincent L. Morelli.
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The European Union: Questions and Answers
strategies and positions (e.g., imposing sanctions on a country). However, CFSP does not
preclude individual member states pursuing their own national foreign policies or conducting
their own national diplomacy.
CFSP remains a work in progress. Although many view the EU as having made considerable
strides in forging common policies on a range of international issues, from the Balkans to the
Middle East peace process to Iran, others argue that the credibility of CFSP too often suffers from
an inability to reach consensus. The launch of the U.S.-led war in Iraq in 2003, for example, was
extremely divisive among EU members, and they were unable to agree on a common EU
position. Others note that some differences in viewpoint are inevitable among 2728 countries that
still retain different approaches, cultures, histories, and relationships—and often different national
interests—when it comes to foreign policy.
The EU’s new Lisbon Treaty seeks to bolster CFSP by increasing the EU’s visibility on the world
stage and making the EU a more coherent foreign policy actor. As noted above, the treaty
establishes a High Representative of the Union for Foreign Affairs and Security Policy to serve
essentially as the EU’s chief diplomat. This new post combines into one position the former
responsibilities of the Council of Ministers’ High Representative for CFSP and the Commissioner
for External Relations, who previously managed the European Commission’s diplomatic
activities and foreign aid programs. In doing so, the new postHigh Representative position seeks to marry
the EU’s collective
political influence with the Commission’s economic weight and development
tools. The Lisbon
Treaty also creates a new EU diplomatic corps (the European External Action
Service) to support
the High Representative.78
Does the EU Have a Defense Policy?
Since 1999, the EU has been working to develop a Common Security and Defense Policy
(CSDP), formerly known as the European Security and Defense Policy (ESDP).89 CSDP seeks to
improve the EU’s ability to respond to crises, enhance European military capabilities, and give
the EU’s common foreign policy a military backbone. The EU has created three defense decisionmaking bodies, has set targets for improving defense capabilities, and has developed a rapid
reaction force and multinational “battlegroups.” Such EU forces are not a standing “EU army,”
but rather a catalogue of troops and assets at appropriate readiness levels that may be drawn from
existing national forces for EU operations.
CSDP operations focus largely on tasks such as peacekeeping, crisis management, and
humanitarian assistance. Many CSDP missions to date have been civilian, rather than military, in
nature, with objectives such as police and judicial training (“rule of law”) or security sector
reform. The EU is or has been engaged in CSDP missions in regions ranging from the Balkans
and the Caucasus to Africa and the Middle East.
However, improving European military capabilities has been difficult, especially given flat or
declining European defense budgets. Serious capability gaps continue to exist in strategic air- and
sealift, command and control systems, intelligence, and other force multipliers. Also, a relatively
low percentage of European forces are deployable for expeditionary operations. Some analysts
7
8
For more information, see CRS Report R41959, The European Union: Foreign and Security Policy, by Derek E. Mix.
ESDP was renamed CSDP by the Lisbon Treaty.
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The European Union: Questions and Answers
have suggested pooling assets among several member states and the development of national
niche capabilities as possible ways to help remedy European military shortfalls. In 2004, the EU
established the European Defense Agency to help coordinate defense-industrial and procurement
policy in an effort to stretch European defense funds farther.
8
9
For more information, see CRS Report R41959, The European Union: Foreign and Security Policy, by Derek E. Mix.
ESDP was renamed CSDP by the Lisbon Treaty.
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What Is the Relationship of the EU to NATO?
Since its inception, the EU has asserted that CSDP is intended to allow the EU to make decisions
and conduct military operations “where NATO as a whole is not engaged,” and that CSDP is not
aimed at usurping NATO’s collective defense role. The United States has supported EU efforts to
develop CSDP provided that it remains tied to NATO, does not rival or duplicate NATO
structures or resources, and does not weaken the transatlantic alliance. Advocates of CSDP argue
that building more robust EU military capabilities will also benefit NATO given that 2122 countries
belong to both NATO and the EU.910 The Berlin Plus arrangement—which was finalized in 2003
and allows EU-led military missions access to NATO planning capabilities and common assets—
was designed to help ensure close NATO-EU links and prevent a wasteful duplication of
European defense resources. Since then, two Berlin Plus missions have been conducted in the
Balkans, and NATO and the EU have sought to coordinate their activities on the ground in
operations in Afghanistan and various hot spots in Africa.
Nevertheless, NATO-EU relations remain somewhat strained. Closer and more extensive NATOEU cooperation at the political level on a range of issues—from discussions on countering
terrorism or weapons proliferation to improving coordination of crisis management planning and
defense policies—has been stymied largely by EU tensions with Turkey (in NATO but not the
EU) and the ongoing dispute over the divided island of Cyprus (in the EU but not NATO).1011
Many analysts argue that until a political settlement is reached over Cyprus, enhanced NATO-EU
cooperation is unlikely. Others suggest that additional reasons exist for frictions in the NATO-EU
relationship, including bureaucratic rivalry and competition between the two organizations and
varying views on both sides of the Atlantic regarding the future roles and missions of both NATO
and the EU’s CSDP. Some U.S. officials still worry that a minority of EU member states would
like to build an EU defense arm more independent from NATO in the longer term.
What Is Justice and Home Affairs (JHA)?
The JHA field seeks to foster common internal security measures while protecting the
fundamental rights of EU citizens and promoting the free movement of persons within the EU
zone. JHA encompasses police and judicial cooperation, immigration, asylum, border controls,
fighting terrorism and other cross-border crimes such as drug trafficking, and combating racism
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and xenophobia. For many years, however, EU efforts to harmonize policies in the JHA field
were hampered by member states’ concerns that such measures could infringe on their legal
systems and national sovereignty. The 2001 terrorist attacks on the United States, the subsequent
revelation of Al Qaeda cells in Europe, and the terrorist bombings in Madrid and London in 2004
and 2005, however, helped give new momentum to many initiatives in the JHA area. Among
other measures, the EU has established a common definition of terrorism, an EU-wide arrest
warrant, and new tools to strengthen external EU border controls.
10
Six countries belong to the EU, but not to NATO (Austria, Cyprus, Finland, Ireland, Malta, and Sweden); seven
countriessix other
ones currently belong to NATO but not the EU (Albania, Canada, Croatia, Iceland, Norway, Turkey, and the
United States).
1011
Turkey continues to formally object to Cypriot participation in NATO-EU meetings on the grounds that Cyprus is
not a member of NATO’s Partnership for Peace (PfP) and thus does not have a security relationship with the alliance.
The absence of Cyprus from PfP also hinders NATO and the EU from sharing sensitive intelligence information. In the
current political climate, Cyprus essentially cannot join PfP because it would require the consent of all NATO allies,
including Turkey.
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and xenophobia. For many years, however, EU efforts to harmonize policies in the JHA field
were hampered by member states’ concerns that such measures could infringe on their legal
systems and national sovereignty. The 2001 terrorist attacks on the United States, the subsequent
revelation of Al Qaeda cells in Europe, and the terrorist bombings in Madrid and London in 2004
and 2005, however, helped give new momentum to many initiatives in the JHA area. Among
other measures, the EU has established a common definition of terrorism, an EU-wide arrest
warrant, and new tools to strengthen external EU border controls.
The EU’s Lisbon Treaty gives the European Parliament “co-decision” power over the majority of
JHA policy areas. The Treaty also makes most decisions on JHA issues in the Council of
Ministers subject to the qualified majority voting system, rather than unanimity, in a bid to
strengthen JHA further and speed EU decision-making. In practice, however, the EU will likely
still seek consensus as much as possible on sensitive JHA policies. Moreover, for some issues in
the JHA area, the EU has added an “emergency brake” that allows any member state to halt a
measure it believes could threaten its national legal system and ultimately, to opt-out of it.
Despite these safeguards, the UK and Ireland negotiated the right to choose those JHA policies
they want to take part in and to opt out of all others; Denmark extended its previous JHA opt-out
in some JHA areas to all JHA issues. The Lisbon Treaty technically renames JHA as the “Area of
Freedom, Security, and Justice.”
Does the EU Have a Trade Policy and Process?
The EU has a common external trade policy, which means that trade policy is an exclusive
competence of the EU and no member state can negotiate its own international trade agreement.
The EU’s trade policy is one of its most well-developed and integrated policies. It evolved along
with the common market—which provides for the free movement of goods within the EU—to
prevent one member state from importing foreign goods at cheaper prices due to lower tariffs and
then re-exporting the items to another member with higher tariffs. The scope of the common trade
policy has been extended partially to include trade in services, the defense of intellectual property
rights, and foreign direct investment. The European Commission and the Council of Ministers
work together to set the common customs tariff, guide export policy, and decide on trade
protection or retaliation measures where necessary. EU rules allow the Council to make trade
decisions with qualified majority voting, but in practice the Council tends to employ consensus.
The European Commission negotiates trade agreements with outside countries and trading blocs
on behalf of the Union as a whole. As a result of the Lisbon Treaty, both the Council of Ministers
and the European Parliament must approve all such trade agreements before they can enter into
force. The process for negotiating and concluding a new international trade agreement begins
with discussions among all three EU institutions and a Commission impact assessment, including
a public consultation on the content and options for any future trade accord. Provided there is a
general agreement to proceed, the Commission initiates an informal scoping exercise with the
potential partner country or trade bloc on the range and extent of topics to be considered in the
negotiations. Following this dialogue, the Commission then formulates what are known as
“negotiating directives” (sometimes termed the “negotiating mandate”), which sets out the
Commission’s overall objectives for the future agreement. The “directives” are submitted to the
Council for its approval, and shared with the European Parliament.
Provided the Council approves the “negotiating directives,” the Commission then launches formal
negotiations for the new trade agreement on behalf of the EU. Within the Commission, the
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department that handles EU trade policy—the Directorate General for Trade (DG Trade)—leads
the negotiations but draws on expertise from across the Commission. Typically, there are a series
of negotiation rounds; the duration of the negotiations varies but can range from two to three
years or longer. During the course of negotiations, the Commission is expected to keep both the
Council and the Parliament apprized of its progress and the Council and the Parliament may take
the opportunity to voice their respective views and concerns. The Parliament may conduct its own
oversight hearings through its International Trade Committee (INTA). When negotiations reach
the final stage, both parties to the agreement initial the proposed accord. It is then submitted to
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the Council and the Parliament for review.1112 If the Council approves the accord, it authorizes the
Commission to formally sign the agreement.
Once the new trade accord is officially signed by both parties, the Council submits a draft
decision to conclude negotiations to the Parliament for its consent. The Parliament reviews the
signed agreement both in the INTA Committee and in plenary session. Although the Parliament is
limited to voting “yes” or “no” to the new accord, it can indicate that it would not support the
agreement should it find fault with any of its provisions, and can ask the Commission to review or
address its concerns. If parts of the trade agreement fall under member state competence, all EU
countries must also ratify the agreement according to their national ratification procedures.1213 After
Parliament gives its consent and following ratification in the member states (if required), the
Council adopts the final decision to conclude the agreement. It may then be officially published
and enter into force.1314
How Do EU Countries and Citizens View the EU?
EU member states have long believed that the Union magnifies their political and economic clout
(i.e., the sum is greater than the parts). Nevertheless, tensions have always existed within the EU
between those members that seek an “ever closer union” through greater integration and those
that prefer to keep the Union on a more intergovernmental footing in order to better guard their
national sovereignty. As a result, some member states over the years have “opted out” of certain
aspects of integration, such as passport- and visa-free travel within the EU (UK and Ireland), the
euro (UK, Denmark, and Sweden), Justice and Home Affairs issues (UK, Ireland, and Denmark),
and the common defense policy (Denmark). Another classic divide in the EU falls along big
versus small state lines; small members are often cautious of initiatives that they fear could allow
larger countries to dominate EU decision-making. In addition, the EU’s enlargement to the east
has brought in many new members with histories of Soviet control, which may color their views
on issues ranging from EU reform to relations with Russia or the Middle East; at times, such
differences have caused frictions with older EU member states.
11
The prevailing view among European publics has likewise been historically favorable toward the
EU. Despite the EU’s recent financial troubles and a drop in public support for the EU’s single
currency, surveys indicate that the majority of EU citizens continue to consider EU membership
as good for their countries overall.15 EU citizens also value the freedom to easily travel, work, and
live in other EU countries. At the same time, there has always been a certain amount of “Euroskepticism” among some segments of the European public. Traditionally, such skepticism has
been driven by fears about the loss of national sovereignty or concerns about what some view as a
“democratic deficit” in the EU—a feeling that ordinary citizens have no say over decisions taken
12
Some trade agreements submitted for Council and Parliament approval are accompanied by Commission legislative
proposals needed to implement the new accord; these legislative proposals must also be adopted by both the Council
and the Parliament.
1213
With the entrance into force of the Lisbon Treaty, most policy areas usually included in trade agreements are now
considered areas of exclusive EU competence; thus, most experts judge that member state ratification may be
unnecessary, or required only for small parts of new EU trade agreements. See Stephen Woolcock, “EU Trade and
Investment Policymaking After the Lisbon Treaty,” Intereconomics, 2010.
1314
For more on the EU process for concluding new trade agreements, see European Commission, “Factsheet: Trade
Negotiations Step By Step,” June 2012, http://trade.ec.europa.eu/doculib/docs/2012/june/tradoc_149616.pdf.
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The prevailing view among European publics has likewise been historically favorable toward the
EU. Despite the EU’s recent financial troubles and a drop in public support for the EU’s single
currency, surveys indicate that the majority of EU citizens continue to consider EU membership
as good for their countries overall.14 EU citizens also value the freedom to easily travel, work, and
live in other EU countries. At the same time, there has always been a certain amount of “Euroskepticism” among some segments of the European public. Traditionally, such skepticism has
been driven by fears about the loss of national sovereignty or concerns about what some view as a
“democratic deficit” in the EU—a feeling that ordinary citizens have no say over decisions taken
15
See for example, the German Marshall Fund of the United States, Transatlantic Trends 2013.
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in far-away Brussels. Recently, however, the Eurozone crisis has enhancedhelped increase the degree of Euroskepticism
Euro-skepticism in some countries, particularly those like the UK, in which a vocal Euro-skeptic
minority has long existed; some analysts increasingly question the future of British membership
in the EU, although most view a UK exit from the EU as highly unlikelysuch as the UK, and along with fears about immigration and
globalization, has contributed to the rise of anti-EU populist parties in a number of member
states, including Austria, France, Finland, Sweden, and the Netherlands.
Does the United States Have a Formal Relationship
with the EU?
For decades, the United States and the EU (and its progenitors) have maintained diplomatic and
economic ties. Despite some frictions, the United States and the EU share a dynamic political
partnership on an increasing number of foreign policy issues, and U.S.-EU trade and investment
relations are close and extensive. The 1990 U.S.-EU Transatlantic Declaration set out principles
for greater consultation, and established regular summit and ministerial meetings. In 1995, the
New Transatlantic Agenda (NTA) and the EU-U.S. Joint Action Plan provided a framework for
promoting stability and democracy together, responding to global challenges, and expanding
world trade. The NTA also sought to strengthen individual, people-to-people ties across the
Atlantic, and launched a number of dialogues, including ones for business leaders and legislators.
The Transatlantic Legislators’ Dialogue (TLD) has been the formal mechanism for engagement
and exchange between the U.S. House of Representatives and the European Parliament since
1999, although inter-parliamentary exchanges between the two bodies date back to 1972.
Who Are U.S. Officials’ Counterparts in the EU?
U.S.-EU summits usually occur at least once a year; withunder the Lisbon Treaty now in force, the U.S.
President President
meets with the President of the European Commission and the President of the
European Council. For example, at the last U.S.-EU Summit in November 2011, President
Obama met with Commission President José Manuel Barroso and European Council President
Herman Von Rompuy. European Council.
The U.S. Secretary of State’s most frequent interlocutor in the EU context
is the High
Representative for the Union’s Foreign Affairs and Security Policy. The U.S. Trade
Representative’s key interlocutor is the European Commissioner for Trade, who directs the EU’s
common external trade policy. Other U.S. Cabinet-level officials interact with Commission
counterparts or member state ministers in the Council of Ministers formation as issues arise.
Many working-level relationships between U.S. and EU officials also exist. A delegation in
Washington, DC, represents the European Union in its dealings with the U.S. government, while
the U.S. Mission to the European Union represents Washington’s interests in Brussels.
14
See for example, the German Marshall Fund of the United States, Transatlantic Trends 2012.
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How Are U.S.-EU Political Relations Doing?
The United States has supported the European integration project since its inception as a way to
foster democratic allies and strong trading partners in Europe. During the Cold War, the EU
project was viewed as central to deterring the Soviet threat. Today, the United States often looks
to the EU as its partner of choicefor partnership on an extensive range of common foreign policy challenges—from
from countering terrorism and weapons proliferation to ensuring the stability of international
financial financial
markets—and the two sides have a proven track record of close cooperation on a
multitude of
global concerns. Over the last decade, for example, the United States and the EU
have promoted
peace and stability in the Balkans and Afghanistan, worked together to manage
and contain Iran’s nuclear
ambitions, and have significantly strengthened their law enforcement
and counterterrorism cooperation. Recently, the United States and the EU have sought to support
political change in the Middle East and North Africa since the start of the “Arab Spring,” and
together have imposed sanctions on Syria in an effort to stop the Asad regime’s violent repression
and bring an end to Syria’s and counterterrorism
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cooperation. In recent years, U.S. and EU policies have been largely aligned in response to the
changes in the Middle East and North Africa resulting from the “Arab Spring,” and the United
States and the EU have sought to exert diplomatic pressure and impose sanctions on Syria in an
effort to end that country’s bloody civil war.
At times, however, the U.S.-EU political relationship has faced serious challenges. U.S.-EU
relations hit a historic low in 2003 over the U.S.-led invasion of Iraq, which some EU members
supported and others strongly opposed. In the aftermath of that crisis, the former George W. Bush
Administration sought to improve cooperation with the EU. The Obama Administration has
worked to bolster ties with the EU and to reduce frictions further. U.S.-EU tensions have
dissipated on several key issues, such as Iran, the Israeli-Palestinian conflict, and terrorist
detainee policies. Nevertheless, U.S.-EU differences persist in other areas, including data privacy,
climate change, and energy security. Recently, some European leaders have also expressed
concerns about the U.S. “pivot” toward Asia. U.S. officials stress that this “pivot” will not come
at the expense of the transatlantic relationship and that the United States hopes to engage more
closely with Europe in the future on issues of economic and strategic importance in Asia.
Meanwhile, some U.S. policymakers worry that the continuing Eurozone crisis could lead to a
more inward-focused EU, preoccupied with its own economic and political problems, and less
able to be a robust partner for the United States in tackling common international concernsand emphasize areas of partnership with the EU.
U.S.-EU tensions on several key issues, such as Iran and the Israeli-Palestinian conflict, began to
dissipate. The Obama Administration has also worked to bolster ties with the EU and has
expanded cooperation on other issues, such as cybersecurity and energy security.
Nevertheless, U.S.-EU differences persist in other areas. Data privacy has been and continues to
be a key U.S.-EU sticking point. Some European officials, including many Members of the
European Parliament (MEPs), have long worried that several U.S.-EU law enforcement and
counterterrorism information-sharing arrangements do not sufficiently protect European citizens’
data privacy rights. European concerns have been heightened since the June 2013 revelations of
U.S. National Security Agency surveillance programs, press reports suggesting that U.S.
intelligence agencies have monitored EU diplomatic offices, and subsequent allegations of other
U.S. intelligence operations in Europe (including reported phone record collection efforts in
France and Spain as well as the past monitoring of German Chancellor Angela Merkel’s mobile
phone). In response, some MEPs are now demanding stronger safeguards for personal data
transferred outside of the EU, and many experts contend that the purported U.S. surveillance
activities will likely make concluding future U.S.-EU information-sharing agreements more
difficult. Analysts also worry that such alleged U.S. activities could foster mistrust between the
two sides and negatively affect the broader U.S.-EU relationship, including the prospects for a
comprehensive Transatlantic Trade and Investment Partnership (see below).16
In addition, some European leaders have recently expressed concerns about the U.S. “pivot” or
rebalancing toward Asia. U.S. officials stress that this rebalancing will not come at the expense of
the transatlantic relationship and that the United States hopes to engage more closely with Europe
in the future on issues of economic and strategic importance in Asia. Meanwhile, some U.S.
policymakers continue to worry that the Eurozone crisis could lead to a more inward-focused EU,
preoccupied with its own economic and political problems, and less able to be a robust partner for
the United States in tackling common international challenges.
How Are U.S.-EU Economic Relations Doing?
The United States and the EU share the largest trade and investment relationship in the world.
Despite the 2008-2009 global economic downturn, the combined U.S. and EU economies account
for over 50% of global gross domestic product, roughly 25% of global exports, 32% of global imports, and 6575% of global banking assets and financial services. In 2011, the value of the two-way flow of
goods, services, and income receipts from investment between the United States and the EU
totaled almost $1.5 trillion. U.S. and European companies are also the biggest investors in each
other’s markets: total stock of two-way direct investment was over $3.4 trillion at the end of
2010. Studies estimate that roughly 8 million workers are directly employed by U.S. companies
operating in Europe and European companies operating in the United States, and when combined
with indirect employment effects, the U.S.-EU economic relationship may account for up to 15
million jobs on both sides of the Atlantic.15
15
See CRS Report RL30608, EU-U.S. Economic Ties: Framework, Scope, and Magnitude, by William H. Cooper; and
Johns Hopkins SAIS Center for Transatlantic Relations, The Transatlantic Economy 2012.
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, and 31% of global
imports. According to one recent study, the transatlantic economy generates over $5 trillion in
commercial sales a year and employs up to 15 million workers on both sides of the Atlantic. Of
16
James Fontanella-Khan, “MEPs Call for Clause to Limit American Internet Snooping,” Financial Times, June 19,
2013; Michael Birnbaum, “EU Fury on Allegations of U.S. Spying,” Washington Post, June 30, 2013; Alison Smale,
“Indignation Over U.S. Spying Spreads in Europe,” New York Times, October 24, 2013.
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particular importance is the fact that U.S. and European companies are the biggest investors in
each other’s economies (total stock of two-way direct investment was almost $3.7 trillion as of
2011) and the United States and Europe remain each other’s most profitable markets.17
Although the vast majority of the U.S.-EU economic relationship is harmonious, some tensions
exist. U.S.-EU trade disputes persist over poultry, bio-engineered food products, protection of
geographical indicatorsindications, and subsidies to Boeing and Airbus. Many analysts note that resolving
U.S.-EU trade disputes has become increasingly difficult, in part because both sides are of
roughly equal economic strength and neither has the ability to impose concessions on the other.
Another factor may be that many disputes involve differences in domestic values, political
priorities, and regulatory frameworks. The United States and the EU have made a number of
attempts to reduce remaining non-tariff and regulatory barriers to trade and investment. The
Transatlantic Economic Council (TEC) was created at the 2007 U.S.-EU summit and tasked with
advancing the process of regulatory cooperation and trade barrier reduction.
Over the last few years, the global economic downturn and the ongoing Eurozone crisis have also
challenged the U.S.-EU relationship. Given the extensive transatlantic economic ties, U.S.
policymakers worryofficials worried that the EU’s debt crisis could adversely affect U.S. exports to and sales of U.S.
companies in Europe, or that ripple effects could weaken U.S. financial institutions and push the
United States back into recession should any Eurozone member default. TheIn response, the Obama
Administration has urged the EU to take forceful action to address the debt crisis and has
advocated for
more substantial financial assistance for struggling Eurozone economies. Some
U.S. officials have also questioned what they view as the EU’s emphasis on austerity measures,
Although U.S. concerns
about the Eurozone crisis have diminished amid U.S. economic growth and increasing market
stability in Europe, some U.S. policymakers continue to question what they view as the EU’s
emphasis on austerity measures, believing that greater efforts are needed to promote economic growth.
In light of the fiscal and economic difficulties on both sides of the Atlantic, in November 2011,
U.S. and EU leaders directed the TEC to establish a High Level Working Group (HLWG) on Jobs
and Growth. The HLWG was charged with considering ways to increase U.S.-EU trade and
investment to stimulate more job creation and economic growth on both sides of the Atlantic.
Based on the recommendations in the HLWG’s final report, the United States and the EU plan to
launch negotiations on an ambitious, high-standard Transatlantic Trade and Investment
Partnership; President Obama announced this initiative during his February 2013 State of the
Union address, signifying for many the Administration’s seriousness about pursuing this
agreement with the EU. The Partnership would aim to: further open markets to increase U.S. and
EU exports; strengthen rules-based investment; tackle costly non-tariff barriers; seek to reduce
regulatory barriers; and enhance cooperation on trade issues of global concern.16
launched negotiations in July 2013 on an ambitious, high-standard free trade agreement, known
as the Transatlantic Trade and Investment Partnership (TTIP). Both sides hope that the TTIP
negotiations will result in an agreement that further opens markets and increases U.S. and EU
exports; strengthens rules-based investment; tackles costly non-tariff barriers; reduces regulatory
barriers; and enhances cooperation on trade issues of global concern.18
Historically, U.S.-EU cooperation has been a driving force behind efforts to liberalize world trade
and ensure the stability of international financial markets. U.S. and EU leaders have sought to
pursue a coordinated response to the global financial crisis through the G-20, which brings
together industrialized and developing countries. And many view U.S.-EU cooperation as crucial
to managing emerging economies such as China, India, and Brazil in the years ahead. At the same
time, divisions exist both among EU countries and between the EU and the United States in some
policy areas. U.S.-EU disagreement over agricultural subsidies, for example, has contributed to
the stalemated Doha Round of multilateral trade negotiations. U.S.-European differences also
persist about how to curb large global trade imbalances viewed as posing serious risks to
economic growth and an open international trading system.
16
Office of the United States Trade Representative, “Fact Sheet: United States To Negotiate Transatlantic Trade and
Investment Partnership with the European Union,” February 13, 2013. The HLWG’s final report, released on February
11, 2013, is available at: http://www.ustr.gov/sites/default/files/02132013%20FINAL%20HLWG%20REPORT.pdf.
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Daniel S. Hamilton and Joseph P. Quinlan, The Transatlantic Economy 2013: Annual Survey of Jobs, Trade, and
Investment between the United States and Europe, Center for Transatlantic Relations, 2013. Also see CRS Report
RL30608, EU-U.S. Economic Ties: Framework, Scope, and Magnitude, by William H. Cooper.
18
Office of the United States Trade Representative, “Fact Sheet: United States To Negotiate Transatlantic Trade and
Investment Partnership with the European Union,” February 13, 2013. Also see CRS Report R43158, Proposed
Transatlantic Trade and Investment Partnership (TTIP): In Brief, by Shayerah Ilias Akhtar and Vivian C. Jones.
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policy areas. U.S.-EU disagreement over agricultural subsidies, for example, has contributed to
the stalemated Doha Round of multilateral trade negotiations. U.S.-European differences also
persist about how to curb large global trade imbalances viewed as posing serious risks to
economic growth and an open international trading system.
Author Contact Information
Kristin Archick
Specialist in European Affairs
karchick@crs.loc.gov, 7-2668
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